Business round for banks. Distribute some records …

Argentina is a country in Latin America, where banks charge the highest commissions for buying and selling dollars, according to a report prepared by Universidad Argentina de la Empresa (UADE). At the end of January, on the day of the study, the commission was on average 4.92 percent. Behind them were Uruguay and Mexico, with commissions respectively 4.39 and 4.25 percent. Below Chile with 3.03 percent and Colombia with 3.21 percent. Countries with the lowest fees are Bolivia, from 1.46%. Peru, 0.30 percent; and Brazil, with the lowest rate in the region, 0.02 percent.

In Argentina, the bank margin for the purchase and sale of dollars (according to the Banco Nación exchange rate) was not always in current values. Before the first significant devaluation in 2018, Registered in May, the "exchange spread" was 2.46 percent. Then, operators adjusted their rates and maintained 3.5 percent, then returned to strongly correct, reaching 5, 14 percent. in October, after the second major devaluation of the year.

The average annual closing of the exchange spread in the period 2015-2017 was 2.77 percent, which is 2.12 percentage point less than on December 28, 2018.

The exchange spread is the difference in the price of the currency between its selling price and the purchase price. This margin is a direct profit for operating units, i.e. Banks and exchanges. In financial markets, where there is more volatility of currency prices (greater uncertainty), entities strive to protect themselves by increasing the difference between the point of sale and purchase, to ensure profits from the purchase and sale operations, the report argues.

Three other factors affect the spread:

1) The requirements of monetary authority regarding the level of position of changes in banking entities (how many dollars can / should keep).

2) costs of importing physical banknotes from abroad, when there is an excessive demand for banknotes (similarly, when the excess supply forces ticket exports);

3) Exchange regime: the higher the exchange rate, the larger the spread.